Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CU reacts to GMs return to car leasing
NEW YORK (8/3/09)--General Motors (GM) could begin leasing vehicles again this month, according to The Wall Street Journal (July 31). About 3% of credit unions offer auto leasing. These credit unions have about 8.3% of credit union members, according to the Credit Union National Association’s Credit Union Service Profile for December 2008. Lake Michigan CU, Grand Rapids, Mich., did not react strongly to news about GM possibly leasing again. The credit union ended its leasing program last year when GMAC, Ford and other auto giants pulled out of the leasing market, Scott Wiggins, vice president of lending, told News Now. Even if GMAC starts leasing again, the credit union doesn’t anticipate offering auto leases. It’s likely that auto giants like GMAC will have to increase their lease payments and lower residuals to make it work, Wiggins said. Leasing was attractive to members who were interested in owning a certain car for a few years. In the past, leasing payments had cost some members less than auto loan payments. But the gap in savings will likely shrink, so members may reconsider the benefits of leasing a car. “If they can buy a new car for $360 a month in loan payments, rather than lease a car for $340-$345 a month, they may opt to buy and build equity,” Wiggins said. When Lake Michigan CU stopped its leasing program, it did not receive any calls from members asking them to reinstate the program. “Members were unfazed,” Wiggins said. Normally, members had sought leases through dealerships, and came to the credit union if they couldn’t get leases through dealers.
Other Resources

RSS print
News Now LiveWire
Falling #gas prices: Pros, cons for U.S. economy #NewsNow #Market http://t.co/XWwwERwe7e
7 hours ago
Members of Interstate FCU have voted to merge with Credit Union of Southern California https://t.co/yYeSWEG4GH
10 hours ago
.@InfinityFCU has named Liz Hayes as president/CEO. Hayes was formerly EVP and chief administrative offficer at @Affinity_Plus
10 hours ago
.@wpcu battles Speedway in round 3 of Dayton Brand Madness via @DBJnews http://t.co/EbQL5f9be8
11 hours ago
New at #NewsNow: Fed regulators approve new #QRM rule. http://t.co/Bdz5q43xjZ
12 hours ago